• by Masha Geller , July 15, 2003

Avenue A, the interactive agency unit of aQuantive, Inc., has lost one of its biggest accounts - AT&T Wireless Services Inc. The advertiser recently awarded a corporate branding assignment to Goodby, Silverstein & Partners and Ogilvy & Mather, New York, has their $700 million advertising account.

"Despite the loss of AT&T Wireless as an Avenue A client, aQuantive's financial position remains strong. We still expect our 2003 gross profit to increase by over 40% from 2002 and our year-end outlook continues to remain positive," said Brian McAndrews, aQuantive president and CEO, in a statement. "Obviously we are disappointed to lose the relationship we have had with AT&T Wireless, but Avenue A has an exceptional and growing Fortune 1000 client list, superior customer relations, performance results that are at the highest level and an extremely competitive position as an interactive agency that uses proven data and analytics to deliver superior return on investment."

In a press release, aQuantive said the transition is expected to occur during the third quarter and will affect most of Avenue A's online activities on behalf of AT&T Wireless.

The company said the loss of this client doesn't affect its financial results for the second quarter, which will be released July 23, and revised its guidance for all of 2003.

It now expects revenues to be $200-220 million, up from previous guidance for $190-200 million. aQuantive disclosed that its interactive agency units, Avenue A and Philadelphia-based i-FRONTIER, have added a total of six new advertising clients since the beginning of the year, and Atlas DMT, aQuantive's advertising technology business unit, has added 18 new agency clients in 2003.